Lab 3 (Question 3) ~ Lyryx Learning Inc
Lab 3 (Question 3)
Question 3 [8 points]
The following diagram shows the aggregate expenditure schedule for the economy and the equilibrium
condition on the 45 degree line. Round all answers to the nearest whole number.
Suppose output is K. What is the level of planned aggregate expenditure? Is planned expenditure greater or
less than output?
What is the size of the unplanned change in inventories at output K.
How will business firms respond to this situation?
What is the equilibrium income and expenditure?